Those that do not change as the number of sales change (e.g. rent or salaries)
1 of 27
Variable Costs
Those that change in line with the amount of business (e.g. the cost of buying raw materials).
2 of 27
Working Capital
The finance available for the day-to-day running of the business.
3 of 27
Angel Investors
Investors who back a business before it has opened its doors, taking a full equity risk, i.e. if it fails the angel investor will lose everything invested.
4 of 27
Collateral
An asset used as security for a loan. It can be sold by a lender if the borrower fails to pay back a loan.
5 of 27
Crowdfunding
Obtaining external finance from many individual, small investments, usually through a web-based appeal.
6 of 27
Public Limited Company (PLC)
A company with limited liability and shares, which are available to the public. Its shares can be quoted on the stock market.
7 of 27
Seedcorn Capital
The early stage (sowing a seed) finance that might come from an angel investor.
8 of 27
Share Capital
Business finance that has no guarantee of repayment or of annual income, but gains a share of the control of the business and its potential profits.
9 of 27
Stock Market
A market for buying and selling company shares. It supervises the issuing of shares by companies. It is also a second-hand market for stocks and shares.
10 of 27
Venture Capital
High-risk capital invested in a combination of loans and shares, usually in a small, dynamic business.
11 of 27
Bankrupt
When an individual is unable to meet personal liabilities, some or all of which can be as a consequence of business activities.
12 of 27
Creditors
Those owed money by a business - for example, suppliers and bankers.
13 of 27
Limited Liability
Owners are not liable for the debts of the business; they can lose no more than the sum that they invested.
14 of 27
Sole Trader
A one-person business with unlimited liability.
15 of 27
Unlimited Liability
Owners are liable for any debts incurred by the business, even if it requires them to sell all of their assets and possessions and become personally bankrupt.
16 of 27
Best Case
An optimistic estimate of the best possible outcome - for example, if sales prove much higher than expected.
17 of 27
Business Plan
A document setting out a business idea and showing how it is to be financed, marketed and put into practice/
18 of 27
Cash Flow Forecast
Estimating future monthly cash inflows and outflows, to find out the net cash flow.
19 of 27
Just-In-Time
Ordering stock so that it arrives just before it is needed, just in time, i.e. having no stockpiles to cover for late deliveries.
20 of 27
Overdraft
Short term borrowing from a bank. The business only borrows as much as it needs to cover its daily cash shortfall.
21 of 27
Worst Case
A pessimistic estimate assuming the worst possible outcome - for example, sales are very disappointing.
22 of 27
Finance
It can provide the numbers that help managers to make better decisions, and it can count what is happening and what has happened. Here the focus is on finance for decision making.
23 of 27
Sources of Finance
Where the money for a business comes from.
24 of 27
Liabilities
Debts are liabilities that can overwhelm a business owner's personal as well as business finances.
25 of 27
Planning
Planning a firm's financial requirements is helped by a clear, detailed business plan.
26 of 27
Cash Flow
The flow of money into and out if a business in a given time period.
27 of 27
Other cards in this set
Card 2
Front
Those that change in line with the amount of business (e.g. the cost of buying raw materials).
Back
Variable Costs
Card 3
Front
The finance available for the day-to-day running of the business.
Back
Card 4
Front
Investors who back a business before it has opened its doors, taking a full equity risk, i.e. if it fails the angel investor will lose everything invested.
Back
Card 5
Front
An asset used as security for a loan. It can be sold by a lender if the borrower fails to pay back a loan.
Comments
No comments have yet been made